GCC economies responding well to crisis, Saudi minister says

Riyadh: Economies of the GCC states are showing strong indications of relatively higher growth rates and lower inflationary levels despite the global financial crisis, said Saudi Arabia's Finance Minister Ebrahim Al Assaf.

"The GCC economies will continue to maintain a good growth rate ranging between 4 per cent and 6 per cent in 2008 despite the global economic slowdown. If the rate slows down a little, it is because of the slowdown in growth in the oil sector. But the non-oil sectors are expected to continue growing," he said.

Dr Al Assaf made the remarks in a press statement issued at the end of an emergency meeting of the finance ministers and central bank governors of the GCC held in Riyadh on Saturday evening. The meeting reaffirmed its full confidence in the stability of the GCC financial sector.

Dr Al Assaf said that the GCC meeting came within the framework of continuous coordination between the GCC countries and in the light of global financial crisis.

Call for joint action

"The signs of the seriousness of the crisis, with indications of a recession, started to emerge in developed countries and there is a possibility for direct and indirect effects on the economies of the GCC countries," he said while stressing the need for urgent steps to counter any adverse implications.

"The matter requires all to work [together] to avoid its negative impact as well as to mitigate its effects on our economies. There should also be an enhanced coordination of our policies and procedures," he said.

Dr Al Assaf praised the measures taken by GCC states to deal with the possible consequences of the global crisis, stressing the importance of continued follow-up efforts and a willingness to initiate timely action.

He said the crisis required global cooperation and international coordination to address it.

He called on the World Bank and the International Monetary Fund to play a vital role in helping the global economy to overcome the grave crisis.

"These bodies [World Bank and IMF] should pay special attention to support the poor countries to confront this crisis that [has] affected their econ-omies heavily," he said while commending the International Monetary Fund for announcing the availability of $200 billion in liquidity on easy conditions. He also stressed the importance of continuing efforts for liberalising trade and investment.